Annual Report 2013

annual reporT 2013

The New Zealand Initiative Annual Report 2013

© The New Zealand Initiative 2014

Published by:The New Zealand Initiative PO Box 10147 Wellington 6143 New Zealandwww.nzinitiative.org.nz

ISBN: 978-0-9922565-9-3

Design by The Little Design Company, Wellington, NZ Printed by Wickliffe Solutions

http://www.nzinitiative.org.nz

1

AnnuAl RepoRt 2013

2 4 6 7 8 18 21 23 24 25 26 28 29 31 32 33

Chairmen’s foreword

Message from the Executive Director

The goals of The New Zealand Initiative

Achieving common goals

2013 in review

Publications

Annual Members’ Retreat

The Miro Summit

Towards a New Localism

Next Generation Debates

Lectures to the Initiative

Initiative in the media

The Initiative’s outreach

Initiative staff

Board of directors

Members

2

Chairmen’s Foreword

T he New Zealand Initiative will shortly be two years old and, as our organisation’s influence on the policymaking process grows, we hope you share our enthusiasm for what Executive Director Oliver Hartwich and his team have achieved so far.

The challenges early on for the Initiative were to recruit a world-class research team, develop a brand as a new, relevant and innovative think tank, as well as stabilise and grow our membership base. The Board thinks we have succeeded with all these objectives.

Over the last year, the challenge has been to deliver quality research on the three major projects critical to New Zealand’s future prosperity: housing affordability, education and foreign direct investment.

In this, the Initiative’s research team have made excellent progress. Their policy recommendations on housing affordability were welcomed by both major political parties, and ongoing work on New Zealand’s foreign direct investment position continues to expose how insular our economy has become in an increasingly competitive global economy. On education, local and international research published by the Initiative contributed significantly to the $360 million teacher quality programme launched at the beginning of this year.

These are all big issues for New Zealand and sorely in need of a critical voice. There is a lack of in-depth analysis outside of government, with the media under-resourced and universities focused on other research streams than the big social and economic policy issues facing the nation today.

the new ZeAlAnd InItIAtIve

ToNy CARTER

RoGER PARTRIDGE

3

The role our organisation plays is therefore a crucial one – and it is in all our interests as business leaders that we succeed.

Our predecessor organisations can point to real successes in shaping social and economic policy in New Zealand. Based on the quality of work Oliver and his team have produced – and their innovative policy recommendations – we are confident that track-record will be maintained and extended.

We have also made good progress with our membership. We currently have more than 70 members, of whom 37 are full members and include the majority of New Zealand’s biggest companies. Membership has grown this year and we have continued to provide a valuable forum to bring members together for informal conversations, engagements with leaders from both sides of the political divide, meetings with top bureaucrats, and discussions with leading international academics.

Over the past year, we hosted events with Prime Minister John Key, senior cabinet ministers including Bill English and Hekia Parata, (then) leader of the Opposition, David Shearer, former Australian Prime Minister John Howard, and senior editor of The Australian newspaper Nick Cater, just to name a few.

We believe Oliver and his team can look back on the year with real pride in their achievements, and we are sure members will join with us in thanking them for their outstanding work over the last year.

RoGER PARTRIDGE ToNy CARTER

AnnuAl RepoRt 2013

4

message From The exeCuTive direCTor

a week is a long time in politics, as former British Prime Minister Harold Wilson once said. He may well have been right when he coined this phrase in the 1960s. However, the arrival of 24-hour news channels, the World Wide Web and social media have

accelerated the passage of political time so that the weeks nowadays seem even longer. Rapid change is the only certainty left in contemporary politics.

In stark contrast to this acceleration of political life stands the permanence of some of the policy issues we are dealing with.

Parliaments may get elected, ministers and prime ministers change, bills become law but at the end of the day we are left with the same problems we have been discussing for years, if not decades: How do we lift our productivity levels? How can we adjust our social systems in the face of an ageing society? How do we attract talent to New Zealand and how do we keep it here?

The New Zealand Initiative was formed in April 2012; in political terms, this must seem like half an eternity. But the research topics we decided to focus on in our first couple of years have proven both timeless and timely: housing affordability, the openness of the New Zealand economy; and the quality of the education system and the teachers working within it.

In hindsight, we could not have picked any more burning issues for the future of this country:

• Over the past months, we have seen how price increases in our housing market have become so concerning that the Reserve Bank resorted to some highly unorthodox measures to cool it in the form of loan-to-value ratios.


5

• At the same time, ordinary families are struggling to get a foot on the property ladder or to keep up with their mortgage payments.

• As UNCTAD’s latest World Investment Report shows, capital inflows to New Zealand fell by a third in the previous year. It is clear to see that our economy is not nearly as attractive and open to foreign investors as we believe.

• If we needed a wake-up call that there are problems within our education system, the last PISA report delivered them. For the first time ever, New Zealand dropped not only in the international league tables but our students also fell behind in absolute terms.

We believe that these three issues are among the most important challenges facing this country. This is why we are working on them, as you would have seen in the reports and comment articles we have published this year.

We were happy about the positive responses we have received on them. We were equally pleased about the controversies they have created. Robust debates are needed to tackle these big issues.

As we are about to enter an election year, political debate may focus more on the fight for power rather than the question of what to do with it once it is attained or secured.

This does not make the job of think tanks like us any easier but it makes our work all the more important. You can expect us to do more research and develop creative policy recommendations especially where political debates have become stale and predictable.

DR oLIvER HARTwICHExecutive Director

AnnuAl RepoRt 2013

6

AnnuAl RepoRt 2013

The goals oF The new Zealand iniTiaTive

The New Zealand Initiative is a unique organisation, and not just by New Zealand standards. We are a non-partisan think tank that is a membership organisation; we are an association of business leaders that is also a research institute. And we believe that

these are not contradictions.

What sets us apart is that while most think tanks are only loosely affiliated with their donors, we take the opposite approach.

We are proud to have some of New Zealand’s highest profile business leaders among our members. It is a very diverse membership with a wide range of interests, experiences, and ideas. We are even more privileged because our members are as passionate about good public policy as we are.

We believe that our goals and values are similar – if not identical – to what most New Zealanders want to see achieved:

• A good education system.

• Affordable housing.

• An open economy.

• A free and democratic society.

• The protection of our natural resources and heritage.

• Sound public finances.

• A stable currency.

6


7

AnnuAl RepoRt 2013

aChieving Common goals

The challenge in public policy is often not to define what you want to achieve. The real challenge is finding ways of achieving widely shared goals. Every good think tank needs solid foundations. These are ours:

• Credibility: Our research is based on a sound theoretical framework and is peer-reviewed on a routine basis.

• Empirical evidence: Our recommendations are supported by empirical, and often international, evidence.

• Non-partisanship: We engage with parties from across the political spectrum.

• Independence: We are an organisation that promotes good public policy, not the interests of individual businesses or industries.

• Commitment to New Zealand: Members and staff of the Initiative share the vision to build a better New Zealand. We believe in a prosperous, free and fair society with a competitive, open and dynamic economy.

AnnuAl RepoRt 2013


88

the new ZeAlAnd InItIAtIve AnnuAl RepoRt 2013AnnuAl RepoRt 2013

2013

FEbruary

Our new website launches, with greater accessibility and archived material from our predecessors: The New Zealand Institute and the New Zealand Business Roundtable.

Luke Malpass begins his round-the-world trip to the United Kingdom, Germany, Switzerland and the United States as part of his research on housing affordability.

2013 in review

JAnuARY

1 FEbruary

“Judging by column inches, housing affordability will be a crucial political issue this year”. Opposition housing policies fail to address main problem, Luke Malpass, The National Business Review, 1 February 2013

25 JaNuary

Our first NBR column Initiative Matters is published. Can land of the free also be land of the brave? Oliver Hartwich, National Business Review, 25 January 2013

13 FEbruary

Initiative@home: Justus Haucap, one of Germany’s leading economists, presents his unfiltered views on the efficiency and governance of his home country.

FeBRuARY

the new ZeAlAnd InItIAtIvethe new ZeAlAnd InItIAtIve AnnuAl RepoRt 2013

9

AnnuAl RepoRt 2013

2013MARCh

14 marCh

Oliver Hartwich speaks at a Property Council NZ breakfast event in Auckland on the future challenges to the New Zealand economy.

18 marCh

Rose Patterson has her first ever television interview. “There’s a lot of talk in New Zealand about how we have tall poppy syndrome ... you realise that it’s just nothing when compared to other countries.” Does NZ still cut down tall poppies?, Rose Patterson, Firstline TV3, 18 March 2013

15 marCh

“As talk of a Wellington supercity hots up and the government continues its local government reform agenda, a legitimate question is asked: what is the role of government in New Zealand?” Swiss show how to make councils competitive, Luke Malpass, The National Business Review, 15 March 2013

21 marCh

We welcome more than 180 guests to the retreat dinner featuring former Australian Prime Minister Hon John Howard as key speaker.

21 aNd 22 marCh

The inaugural Members’ Retreat is held at The Spencer on Byron in Takapuna, Auckland.


1010


2013

4 aprIl

Oliver Hartwich chairs the inaugural Franklin Salon at the US Ambassador’s residence.

18 aprIl

Television and radio broadcasting personality Lindsay Perigo interviews Oliver Hartwich at a breakfast event hosted by FSB Financial.

ApRIl

29 aprIl

The first report in our Foreign Direct Investment series, New Zealand’s Global Links: Foreign Ownership and the Status of New Zealand’s Net International Investment, is launched.

David Farrar of Kiwiblog praises Oliver Hartwich’s column on Labour and Green Party power policy as “a must read column ... He cuts through the rhetoric to focus on some key issues.” Hartwich on the power plans, Kiwiblog, 29 April 2013

David Farrar praises the Initiative’s FDI report as “a great contribution to our economic knowledge, and hopefully will improve the level of debate on foreign investment.” Facts and myths on foreign investment, Kiwiblog, 29 April 2013

aprIl

Rose Patterson begins her travels around Singapore, Finland, the UK, Germany and Canada as part of her education research.


11

AnnuAl RepoRt 2013

2013MAY

2013 In RevIew

may

The New Zealand Initiative hosts a delegation of sixteen representatives from the Chinese Communist Party.

Cuban government representatives visit the Initiative to discuss New Zealand’s economic reforms and the role of think tanks.

29 may

Oliver Hartwich speaks at the Treasury about lessons from the European monetary and fiscal crisis.

19 may

Oliver Hartwich takes part in a televised panel discussion looking at the Government Budget. The panel on the Budget, Oliver Hartwich, TVNZ Q+A, 19 May 2013

17 may

Oliver Hartiwch answers the burning questions of the public for NBR’s popular series ‘Ask me anything’. ASK ME ANYTHING: Oliver Hartwich, The National Business Review, 17 May 2013

1 may

Bryce Wilkinson appears on TV3’s Firstline discussing foreign investment. Foreign investment a good thing, Dr Bryce Wilkinson, TV3’s Firstline, 1 May 2013


1212


2013

11 JuNE

Luke Malpass features on Campbell Live to discuss the first housing report. Housing in Auckland: Severely unaffordable, Campbell Live, 11 June 2013

Priced Out: How New Zealand Lost Its Housing Affordability, the first report in our series on housing, is launched with an event at the Initiative offices.

“Research by the New Zealand Initiative shows the number of new houses built dropped from a record 34,400 in 1974 to just 15,000 last year. “ Think tank blasts housing shortage, One News, 11 June 2013

Oliver Hartwich takes part in a panel discussion at a Statistics NZ breakfast event on the public use of statistics.

17 JuNE

Initiative@home: Sinclair Davidson, Senior Fellow at the Institute of Public Affairs, discusses the partial privatisation of state owned assets.

21 JuNE

How to solve Auckland’s housing dilemma: Supply, supply, supply, Luke Malpass, The National Business Review, 21 June 2013

June

9 JuNE

The Initiative’s housing report is covered on Q+A. Priced Out, TVNZ Q+A, 9 June 2013

10 JuNE

Priced Out is featured in an extended piece on interest.co.nz. Michael Bassett and Luke Malpass argue rich and old greenies have stopped housing developments in big cities, Interest.co.nz, 10 June 2013


13

AnnuAl RepoRt 2013

2013JulY

15–17 July

The Initiative hosts forums in Wellington, Auckland and Christchurch featuring Nick Cater to discuss his controversial new book. The Lucky Culture: The Rise of a New Ruling Class.

21–23 July

Oliver Hartwich presents his keynote address at the LGNZ conference.

25 July

Oliver Hartwich debates economic policy with Finance Minister Bill English at a Blue Libs event in Auckland.

august

The New Zealand Initiative hosts the Next Generation Debates. Top debaters from Otago, Canterbury, Wellington, and Auckland universities face-off over a range of moots.

21 august

Oliver Hartwich speaks at the Australian Club in Sydney on the Euro crisis.

22–24 august

Oliver Hartwich attends the Centre for Independent Studies’ Consilium conference in Queensland, speaking on the weighty topic ‘Stopping the growth of government’.

2013 In RevIew

2 august

Time to go local, Dr Oliver Hartwich, The National Business Review, 2 August 2013

AuGuSt


1414


2013

27–29 sEptEmbEr

Jenesa Jeram and Khyaati Acharya attended the Liberty and Society conference hosted by the Centre for Independent Studies in Sydney.

4 sEptEmbEr

“New Zealand’s rise is attributed to its steady economic recovery and ‘prudent pro-growth policies,’ according to Oliver Hartwich, executive director of the New Zealand Initiative who helped compile the survey”. NZ beats Australia in terms of competitiveness, One News, 4 September 2013

sEptEmbEr

The launch of our second housing report Different Places, Different Means.

The Initiative partners with the World Economic Forum to release the Global Competitiveness Index, which received significant media coverage on both sides of the Tasman.

12 sEptEmbEr

Think tank identifies lack of supply for rising house prices, The Dominion Post, 12 September 2013

26 sEptEmbEr

Matthew Hooton, as our guest speaker for the Miro Summit dinner, grills Oliver Hartwich on the global economy and New Zealand’s policy challenges.

26–27 sEptEmbEr

The biennial Miro Summit is held, featuring speakers from the world of politics, business and academia.

SepteMBeR


15

AnnuAl RepoRt 2013

oCtoBeR

2013 In RevIew

7 OCtObEr

The Initiative releases the first report in our series on teacher quality: World Class Education?

A Global Perspective on LocalismOliver HartwichWith a foreword by Malcolm Alexander

A Global Perspective on LocalismBy international standards, New Zealand has one of the world’s most centralised forms of government. In other OECD economies, local government runs health and police services, accounts for the majority of public investment, and typically controls a third of public spending. In New Zealand, by contrast, local government has traditionally been small and weak in comparison with central government.

But is this really the best way to govern New Zealand? Around the world, a new localism is taking hold. Subsidiarity, localised decision‐making and devolved powers are the latest trends in good governance.

This essay explores the idea of localism in a historical, philosophical and global context.

Dr Oliver Hartwich is the Executive Director of The New Zealand Initiative. Before joining the Initiative, he was a Research Fellow at the Centre for Independent Studies in Sydney, the Chief Economist at Policy Exchange in London, and an advisor in the UK House of Lords.

He holds a Master’s degree in Economics and Business Administration and a Ph.D. in Law from Bochum University in Germany.

A joint publication by

The New Zealand Initiative | www.nzinitiative.org.nz

LGNZ | www.lgnz.co.nz

ISBN 978-0-9922565-3-1

8 OCtObEr

Voters can push localism, Otago Daily Times, 8 October 2013

The first education report receives support from both the Labour Party and National Party. “Labour’s education spokesman, Chris Hipkins, says the report highlights problems that are stopping the best and brightest people from becoming teachers.” Teacher morale slumps, Labour blames govt, 3 News, 8 October 2013

Minister of Education, Hekia Parata, issues a press release in support of the education report. “I am interested in the analysis and observations that the NZ Initiative report has made ... ”

John Morris appears on Firstline to discuss the first education report. Good teachers need recognition – think tank, 3 News, 8 October 2013

John Morris appears on Breakfast. “Mr Morris also said that the teaching profession needs to be given more recognition if New Zealand wants to hold onto its top graduates...” Morale slipping in the education sector, report says, One News, 8 October 2013

9 OCtObEr

“It’s a good area for focusing on, as teacher quality is almost beyond dispute the most important factor in educational outcomes. “ NZ Initiative on teacher quality, Kiwiblog, 9 October 2013

14 OCtObEr

“According to a recent report from the New Zealand Initiative, schools are having difficulty attracting teaching graduates with maths and science degrees. “ Doing the maths on teacher skills, The Dominion Post, 14 October 2013

3 OCtObEr

“Local Government New Zealand and the New Zealand Initiative are calling for more public services to be provided by local government and funded by local taxes. “ Calls for public services to be funded by local government, The New Zealand Herald, 3 October 2013

Think tank wants more power for local government, Radio New Zealand News, 3 October 2013

2 OCtObEr

The Initiative publishes A Global Perspective on Localism, based on the keynote speech Oliver Hartwich gave at a prior LGNZ conference.

A joint panel discussion is held with LGNZ to launch Oliver’s localism paper. Panelists include the Swiss ambassador and Bill English.

“The Green Party welcomes the New Zealand Initiative’s (NZI) paper ‘A Global Perspective on Localism’, as a timely contribution to the debate on the future of local government in New Zealand.” The power of local, Green Party press release, Greens.org.nz, 2 October 2013

2013


1616


noveMBeR2013

NOvEmbEr

Oliver Hartwich accepts an invitation from the Hong Kong government to spend a week in Hong Kong meeting political, academic and business leaders.

20 NOvEmbEr

Bill English on the third housing report: “English told reporters before a meeting in parliament of National MPs that the Government agreed with the report’s strong focus on housing supply.” English says NZ Initiative’s ‘big bang’ housing reform plan ‘pretty radical’, but well focused on supply and affordability; Water review underway, Interest.co.nz, 20 November 2013

12 NOvEmbEr

The Initiative hosts Richard Hooper, former deputy chairman of British communications regulator Ofcom, who is speaking on global best practice of regulatory regimes.

21 NOvEmbEr

“The Local Government Forum has welcomed the release of The New Zealand Initiative’s latest research report on affordable housing, saying it adds a credible policy voice to the debate.” Local Government Forum welcomes latest housing report, Voxy, 21 November 2013

22 NOvEmbEr

Housing mindset shifts at last, Jason Krupp, The National Business Review, 22 November 2013

18 NOvEmbEr

The third housing report Free to Build is launched, which includes concrete policy recommendations. The report receives a good amount of attention from the public and media.

Oliver Hartwich speaks on NewstalkZB on housing affordability. Dr Oliver Hartwich: Housing affordability study, NewstalkZB, 18 November 2013

19 NOvEmbEr

Think tank urges housing rethink, The New Zealand Herald, 19 November 2013

David Farrar of Kiwiblog describes the Initiative’s housing policy proposals as “Excellent thinking outside the square”. NZ Initiative on how to restore housing affordability in New Zealand, Kiwiblog, 19 November 2013


17

AnnuAl RepoRt 2013

2013 In RevIew

4 dECEmbEr

Rose Patterson participates in a live interview on NewstalkZB on New Zealand’s PISA results. Rose Patterson on PISA 2013, Newstalk ZB, 4 December 2013

6 dECEmbEr

Rose Patterson’s analysis of New Zealand’s PISA results is picked up by the mainstream media. “It fell to think-tank the New Zealand Initiative to underline the [PISA] rankings’ serious implications.” Best teaching will require political will, The New Zealand Herald, 6 December 2013

9 dECEmbEr

The second report in our series on teacher quality is released: Around the world: The evolution of teaching as a profession.

12 dECEmbEr

John Morris features on NewsTalkZB, speaking about making teaching a true profession. John Morris: Make teaching a true profession, Newstalk ZB, 12 December 2013

20 dECEmbEr

Schools should be as efficient as factories, Rose Patterson, The National Business Review, 20 December 2013

deCeMBeR 2013

18

the new ZeAlAnd InItIAtIve AnnuAl RepoRt 2013

puBlICAtIonS

AROUND THE WORLD

THE EVOLUTION OF TEACHING

AS A PROFESSION

JOHN MORRISROSE PATTERSON

NEW ZEALAND’SGLOBAL LINKS

FOREIGN OWNERSHIPAND THE STATUS OF

NEW ZEALAND’SNET INTERNATIONAL

INVESTMENTBRYCE WILKINSON

Foreign direCT invesTmenTnew Zealand’s global linksBRyCE wILkINSoN

This report comments on the results of a project that has assembled, in a single document, most of the available official time series on foreign investment in New Zealand and cross-border flows and stocks of capital. It also puts them into a broad historical and analytical context.

The project’s purpose is to facilitate more informed public debate on the contentious issues of external indebtedness and foreign investment in New Zealand.

eduCaTion poliCy

world Class eduCaTion? why new Zealand musT sTrengThen iTs TeaChing proFessionJoHN MoRRIS AND RoSE PATTERSoN

This report investigates the main issues that have an impact on the teaching profession. It covers New Zealand students’ performance in international tests, international attempts to raise student achievement, teaching in the 21st century, and the characteristics of a good teacher.

around The world: The evoluTion oF TeaChing as a proFessionJoHN MoRRIS AND RoSE PATTERSoN

This report tells the story of a journey to talk with policymakers, politicians, and educators about teacher quality policies in six countries: Singapore, Germany, Finland, England, Canada and Australia. Some of these countries outperform New Zealand in measures of student achievement. Some fare worse, but are reforming to improve teacher quality.

The goal of the field research was to think about which policies could be adapted for New Zealand’s unique structural, political and cultural context to strengthen the teaching profession.


19

AnnuAl RepoRt 2013

puBlICAtIonS

DIFFERENT PLACES,DIFFERENT MEANS

MICHAEL BASSETTLUKE MALPASS

$15.00ISBN: 978-0-9922565-2-4

The New Zealand Initiative

PO BOX 10147

Wellington 6143

www.nzinitiative.org.nz

DIFFERENT PLACES, DIFFERENT MEANSMICHAEL BASSETT • LUKE MALPASS

THE NEW ZEALAND INITIATIVE

WHY SOME COUNTRIESBUILD MORE THAN OTHERS

housing aFFordabiliTypriCed ouT: how new Zealand losT iTs housing aFFordabiliTyMICHAEL BASSETT AND LukE MALPASS

Priced Out looks at long-term trends in housing regulation and social circumstances as well as the changing roles of local and central governments. The report reveals how and why New Zealand is suffering a shortfall of houses. It blames New Zealand’s housing crisis on anti-development attitudes, tighter building regulations, and artificial restrictions on land supply.

diFFerenT plaCes, diFFerenT means: why some CounTries build more Than oThersMICHAEL BASSETT AND LukE MALPASS

This report is a summary of international fieldwork from Switzerland, Germany, the United Kingdom and Texas. Focussing on the different property markets and systems of local government, it examines how they interact with local regulators, how the incentives at local government level affect how houses are built, and how their planning culture has an impact upon development.

Free To build: resToring new Zealand’s housing aFFordabiliTyMICHAEL BASSETT, LukE MALPASS AND JASoN kRuPP

This third report draws on the Initiative’s previous two housing reports: Priced Out and Different Places, Different Means. Those reports examined the ways in which government and council regulation has become more centralised and its effect, combined with higher expectations, on the housing market. With many councils complaining about the high costs of new development, incentives to local government also need to be improved. In order to free up the housing market and augment the supply of new homes, the Initiative recommends establishing Community Development Districts, reforming local government incentives and reforming water provision.

PRICEDOUT

HOW NEW ZEALANDLOST ITS HOUSING

AFFORDABILITYMICHAEL BASSETT

LUKE MALPASS

20



21

AnnuAl RepoRt 2013

annual members’ reTreaT

our Annual Members’ Retreat lets members engage directly with domestic and international guest speakers, leading politicians from both government and opposition, and of course, with each other. The lectures and working sessions are conducted in

a collegial, relaxed atmosphere, removed from the day-to-day pressures of business. In this way, the retreat allows for in-depth discussions on the future of New Zealand and the direction of public policy.

Last year, we were delighted to host Prime Minister John Key and then Leader of the Opposition David Shearer who were able to have a free and frank conversation with our members.

The retreat also included a dinner, sponsored by BNZ, which was attended by around 180 senior leaders from the fields of politics, business, and the media.

We were fortunate to have former Australian Prime Minister John Howard as our dinner speaker, who spoke on ‘Trans-Tasman Relations in the Pacific Century’. Of particular interest was John Howard’s remarks on the importance of think tanks and the contribution The New Zealand Initiative can make.

“The experience of interacting with think tanks gave me not only tremendous intellectual input but also the excitement of the economic debate and knowing that we were participating in a debate about the economic future of Australia. ... Long may The New Zealand Initiative do what think tanks do best – keep the feet of the political leaders to the fire on necessary economic reforms.”

John Howard, former Prime Minister of Australia

22



23

AnnuAl RepoRt 2013

The miro summiT

The Miro Summit is our biennial conference for emerging business leaders, and is an exceptional opportunity for delegates to be challenged, provoked, and informed by taking them out of their day-to-day jobs.

In today’s economy, running successful businesses takes more than excellent business skills. It increasingly requires an in-depth understanding of the political, regulatory and international environment in which businesses operate.

The 2013 Miro Summit was held at The Spencer on Byron Hotel in Takapuna, Auckland. It once again brought together highly relevant topics and exceptional speakers. This year’s speakers included representatives from Google, Fonterra, Federated Farmers, The Treasury, The National Business Review, The Spectator Australia, the Labour Party, and the National Party.

The miro

m

23

24


Towards a new loCalism essay launCh and panel disCussiona Global Perspective on Localism is based on a speech given by Dr Oliver Hartwich at the

Local Government New Zealand (LGNZ) annual conference in Hamilton on 23 July 2013.

The essay discusses the question of: if the developed world is looking to put more power in the hands of people at a local government level, why is New Zealand headed in the other direction? This paper compiles and analyses the comparative aspects of local government from historical, philosophical, economic and international perspectives.

To launch the paper, LGNZ and The New Zealand Initiative hosted a panel discussion on alternative options to enable stronger local economies throughout New Zealand.

The event attracted a booked-out audience and was highly topical, coinciding with the lead up to the 2013 local elections.

Dr Oliver Hartwich presented the joint paper on options to enable stronger local economies, followed by a panel discussion with contributions and debate from:

• Hon Bill English, Minister of Finance and Deputy Prime Minister

• Rod Oram, Columnist, The Sunday Star Times

• H.E. Dr Marion Weichelt Krupski, Ambassador of Switzerland

• Lawrence Yule, President of LGNZ & Mayor of Hastings


25

AnnuAl RepoRt 2013

nexT generaTion debaTes

w ith the generous assistance from the Friedlander Foundation, The New Zealand Initiative hosted the Next Generation Debates. Top debaters from Otago, Canterbury, Wellington, and Auckland universities faced-off over a range of moots.

We chose topics that helped students understand different arguments around current public policy issues. The goal was for them to walk away thinking about the issue and to have an open mind when it comes to public policy.

Some of the topics included:

• Newspapers and broadcasters should be compelled to be politically balanced.

• Working for Families is a waste of money.

• We should mine our national parks.

• School zoning should be abolished.

• The New Zealand government has grown too big.

• Young and ambitious? You should leave New Zealand! (the grand final moot)

The semi-final and final debates were followed by panel discussions with industry experts and lively Q & A sessions, and included prominent figures such as Education Minister Hekia Parata, David Farrar of Kiwiblog fame, and former MP and lawyer Stephen Franks.

We would like to acknowledge the generous contribution of the Friedlander Foundation, and thank EY for co-hosting the Grand Final.

26

proFessor JusTus hauCapPRofESSoR of ECoNoMICS AT THE HEINRICH-HEINE uNIvERSITy DüSSELDoRf

TALES fRoM ABSuRDISTAN: AN ECoNoMIST PoNDERS THE LESSoNS fRoM BAD PoLICy MAkING

Germany is Europe’s model economy. It is a prosperous, well-governed, and efficient country. Or is it?

Professor Haucap, one of Germany’s most prominent economists, had a different story to tell. In his jobs at the federal government’s Monopoly Commission and as Founding Director of the Düsseldorf Institute of Competition Economics, Justus came across plenty of examples of Germany’s silly economic policies. And he wasn’t shy about sharing these with us.

Professor Haucap explained why German consumers sometimes get paid to use electricity, why harbour pilots are even luckier in Germany than elsewhere, and how the German government once killed the market for cheap cars.

Most importantly, Professor Haucap explained there is method in all this economic policy madness, and there are important lessons to be learnt for New Zealand policy-makers.

proFessor sinClair davidsonPRofESSoR AT THE SCHooL of ECoNoMICS, fINANCE AND MARkETING AT THE RoyAL MELBouRNE INSTITuTE of TECHNoLoGy AND A SENIoR fELLow AT THE INSTITuTE of PuBLIC AffAIRS

THE MIxED owNERSHIP MoDEL: RADICAL SELL off oR HALf-BAkED PRIvATISATIoN?

The public appears hopelessly conflicted when it comes to asset sales. On the one hand, polls consistently show a majority against asset sales, on the other hand over 113,000 Kiwis became shareholders in Mighty River Power.

As the asset sales agenda progressed last year, the Initiative hosted Professor Sinclair Davidson to discuss the hard questions. If the partial privatisation of our state-owned enterprises is such a good idea, why are so many people against it? Do privatisations deliver the benefits promised by politicians, and if not, why not?

The evening was undoubtedly informative and thought-provoking, and Professor Sinclair Davidson was able to shed some light on what is undoubtedly a controversial issue.

leCtuReS to the InItIAtIve


27

niCk CaTerSENIoR EDIToR AT THE AuSTRALIAN NEwSPAPER

THE LuCky CuLTuRE: THE RISE of A NEw RuLING CLASS

Both Australia and New Zealand pride themselves on their egalitarianism. But is this still the case?

Cater’s controversial book The Lucky Culture observes how since the 1970s a new tertiary-educated class of people have emerged who not only think their education gives them better academic skills, but crucially also a sense of moral superiority over their fellow citizens.

Though his book is written in an Australian context, many of Cater’s observations have a strong resonance in New Zealand.

Cater presented the ideas in his book in Wellington, Christchurch and Auckland. At all three events he provoked some interesting and thoughtful discussion, and it was great having such an engaged audience.

riChard hooper CbeDEPuTy CHAIRMAN of ofCoM

woRLD CLASS REGuLATIoN? wHy REGuLAToRy SETTINGS MATTER

The New Zealand Initiative hosted Richard Hooper, a world expert of effective policymaking and good regulatory design.

Effective policymaking and better regulation are both front of mind at present – particularly since the New Zealand Productivity Commission’s recent paper on regulatory institutions and practices.

Richard Hooper has an extensive international regulatory background and presented his views on good policy making and lessons for New Zealand.

It was great to see this event attract such a diverse crowd, and as with many of our events, have an audience that is keen to participate and engage with the speaker.

AnnuAl RepoRt 2013

28 iniTiaTive in The media

The goal of the New Zealand Initiative is to change the course of public debates and inject new ideas into the political discourse. An effective communications strategy is vital, and media activities are an essential part of our work.

We aim to inform policymakers and opinion leaders, the business community, academic experts, and indeed the public at large. We believe that good policy concerns everybody and that this country needs open debates to shape its future.

The Initiative’s researchers regularly write for national and international publications and newspapers to promote the findings in our research, and produce weekly columns for the NBR, the Business Spectator and Stuff.co.nz.

We are very pleased with the breadth and depth of media coverage the Initiative has received this year, and are proud to be an established source for expert commentary and insight into the major policy and economic issues of the day.

145 commentary pieces published in our Insights newsletter hosted 42 speakers at our events and conferences 118 opinion editorials and columns in the media 31 appearances on radio and TV published 7 major policy reports

29The iniTiaTive’s ouTreaCh

The New Zealand Initiative also interacts directly with a nearly 4,000 strong audience on a weekly basis through our Insights newsletter. Published at noon on a Friday, it provides comment pieces on domestic and global policy issues and the state of the

world. It is a serious newsletter fitting of a think tank, yet light-hearted enough for an enjoyable Friday afternoon read.

Our reach also extends across new media platforms, where we engage in a policy-focused discussion with our followers on Facebook, Twitter and YouTube.

And, of course, there is our website, which showcases all our research output, tracks our activity in the media space, and incorporates the work of our predecessor organisations The New Zealand Institute and the Business Roundtable.

145 commentary pieces published in our Insights newsletter hosted 42 speakers at our events and conferences 118 opinion editorials and columns in the media 31 appearances on radio and TV published 7 major policy reports

30


Left to right: Ben England, Bryce Wilkinson, Chelsy Blair, Jenesa Jeram, Oliver Hartwich, Keely McBride, Jason Krupp, Khyaati Acharya, Rose Patterson.


31

AnnuAl RepoRt 2013

iniTiaTive sTaFFdR olIveR hARtwICh, exeCutIve dIReCtoR

Oliver is the Executive Director of The New Zealand Initiative. Before joining the Initiative he was a Research Fellow at the Centre for Independent Studies in Sydney, the Chief Economist at Policy Exchange in London, and an advisor in the UK House of Lords. Oliver holds a Master’s degree in Economics and Business Administration and a Ph.D. in Law from Bochum University in Germany.

ChelSY BlAIR, opeRAtIonS MAnAGeR And eA to dR olIveR hARtwICh

Chelsy is the Operations Manager of The New Zealand Initiative. She is responsible for membership and board matters, human resources, event management, as well as the finances of the Initiative. She also acts as the Executive Assistant to the Initiative’s Executive Director, Dr Oliver Hartwich. Chelsy holds a National Diploma in Business Administration and Prince II Foundation Certificate in Project Management. She has 17 years’ experience providing support at top management level in New Zealand and Britain and has worked and travelled extensively throughout Europe and parts of Africa.

Ben enGlAnd, CoMMunICAtIonS oFFICeR

Ben is the Communications Officer at the New Zealand Initiative. Before joining the Initiative, he was a Web Content Editor at the New Zealand Qualifications Authority (NZQA), and has also worked as a Legal Editor at LexisNexis New Zealand (formerly Butterworth’s). Ben is the first point of contact for all media and web-page enquiries. Ben also holds a Bachelor of Arts with Honours in Political Science from Victoria University of Wellington.

KeelY MCBRIde, oFFICe AdMInIStRAtoR

Keely is the first point of contact for The New Zealand Initiative and deals with the day-to-day administration of the office. Keely has over 25 years’ experience providing support across a range of working environments. Keely has lived and worked in both Brisbane and Melbourne and holds a Bachelor of Arts in English and Linguistics. Keely has recently relocated from Christchurch.

dR BRYCe wIlKInSon, SenIoR Fellow

Bryce is a Senior Fellow at The New Zealand Initiative. Bryce is also the director of economics consultancy Capital Economics. Prior to setting this up in 1997 he was a director of Credit Suisse First Boston (now First NZ Capital). Before moving into investment banking in 1985, he worked in the New Zealand Treasury, reaching the position of director. Bryce has a strong background in public policy analysis, including monetary policy, capital market research and microeconomic advisory work. Bryce holds a Ph.D in economics from the University of Canterbury and was a Harkness Fellow at Harvard University.

RoSe pAtteRSon, ReSeARCh Fellow

Rose is a Research Fellow at the New Zealand Initiative. Prior to joining the Initiative, she taught English in Japan, and worked for four years as a Researcher for the Health Sponsorship Council promoting healthy lifestyles. Rose has a Master’s degree in Psychology in Child Development and a Bachelor of Commerce from the University of Otago.

32


JASon KRupp, ReSeARCh Fellow

Before joining The New Zealand Initiative, Jason was a business reporter at The Dominion Post. He previously worked for Fairfax’s Business Bureau where he was chiefly responsible for covering equity and currency markets for the group. Prior to that, he wrote for BusinessDesk, New Zealand’s only dedicated business news agency. Jason has a degree in journalism from Rhodes University, and has previously lived in Hong Kong and South Africa.

KhYAAtI AChARYA, ReSeARCh ASSIStAnt

Khyaati is a Research Assistant at The New Zealand Initiative working alongside Dr Bryce Wilkinson on the FDI project. She recently completed a Bachelor of Arts in Political Science and a Bachelor of Commerce in Economics conjointly from the University of Auckland.

JeneSA JeRAM, ReSeARCh ASSIStAnt

Jenesa is a Research Assistant at the New Zealand Initiative working alongside Executive Director Dr Oliver Hartwich. Prior to joining the Initiative, Jenesa completed a research and policy internship with Maxim Institute. She recently completed a Bachelor of Arts with first class Honours from the University of Otago, majoring in Politics, Philosophy and Economics.

luKe MAlpASS, AdJunCt ReSeARCh Fellow

Luke was a Research Fellow at the New Zealand Initiative before moving back to Sydney in September 2013. Luke joined The New Zealand Initiative from Sydney, where he was a freelance consultant and weekly columnist for the Australian Financial Review. Prior to this he spent three years as a Policy Analyst with the Centre for Independent Studies. Luke holds a first class Bachelor of Arts Honours degree in Politics from the University of Otago.

BoARd oF dIReCtoRS

RoGeR pARtRIdGeCo-Chair, The New Zealand Initiative; Chairman, Bell Gully

tonY CARteRCo-Chair, The New Zealand Initiative

dR olIveR hARtwIChExecutive Director, The New Zealand Initiative

deAn BRACewell Managing Director, Freightways Limited

SIMon hullManaging Director, AWF Group Ltd

MuRRAY JACK Chairman, Deloitte

ChRIS MACe CnZMAuckland-based businessman and company director

SCott peRKInS Former Managing Director and Head of Corporate Finance at Deutsche Bank for Australia and New Zealand

AndRew thoRBuRnManaging Director and CEO of Bank of New Zealand

MeMBeRS

CoRpoRAte Air New Zealand Limited

AWF Group

ANZ National Bank

ASB Bank Limited

Bank of New Zealand

Bell Gully

BP Oil New Zealand Ltd

Chorus

Cooper and Company

Deloitte

DeutscheCraigs Limited

Douglas Myers

EY

First New Zealand Capital

Fletcher Building Limited

Fonterra Cooperative Group Ltd

Foodstuffs (Auckland) Ltd

Forsyth Barr

Freightways Limited

Gallagher Group Ltd

Gibbs Technologies

Heartland Bank

Infinity Investment Group

Kiwibank

KPMG

Lumley General Insurance (NZ)

McConnell Group

Mainfreight

Microsoft New Zealand

PwC New Zealand

Samson Corporation

Telecom

The Warehouse Group

Vector

Vero

Vodafone New Zealand

Westpac

Z Energy

ASSoCIAteHalls Transport

Philip Morris

Southern Cross Healthcare

Tappenden Holdings

Tax Management NZ

PortfolioConstruction Forum

not FoR pRoFIt St Cuthberts College

Tainui Group Holdings

University of Auckland

33

Documents

Annual Report 2013